My guess would be the latter because while it is true that there are more Wiis out there it is also the more casual console that is certainly owned by millions of people who are lucky enough if they are able to find the "on/off" button in under two minutes

I think it is because of XBOX live, people want achievements and be able to play on live etc, but they cannot if they pirate.

I think it's about not restricting what people can do with their property, without proper research. Our laws are not quite so much on the side of corporations as in the US. But that's changing constantly, and I'm sure it's going to be illegal eventually.

I am pretty sure the laws arent designed for consoles specifically, but rather consumer laws against EULAs (which generally dont fly on this side of the pond) restricting consumer use of purchased products, be that a dishwasher or a console… Of course you still void your warranty and whatnot.